Business

Sony shares slide 7pc to 32-yr low, results disappoint

Sony Corp CFO Masaru Kato is seen in front of a screen showing the company’s financial results for the 2011 fiscal year at a press conference yesterday. — Reuters picSony Corp CFO Masaru Kato is seen in front of a screen showing the company’s financial results for the 2011 fiscal year at a press conference yesterday. — Reuters picTOKYO, May 11 — Sony Corp shed more than seven per cent to hit a near 32-year low today, a day after it posted a record annual loss of US$5.7 billion (RM17.1 billion) and failed to convince investors that it has a sound strategy to turn around its loss-making TV business and boost smartphone sales.

The Walkman and PlayStation maker has lost its innovative edge, falling behind Apple and Samsung Electronics, and guidance for the current financial year has failed to impress.

“I didn’t see anything positive in there,” a trader at a US bank said. “There is really nothing in there that can justify buying the stock.”

“You see the loss narrowing in the TV business. That’s fine, but I don’t see any future in the TV business, so it doesn’t matter what they do.”

He said Sony’s forecast of 33 million smartphone shipments this business year looked optimistic because its supplier Qualcomm faced capacity constraints and Qualcomm’s main priority was to supply Apple Inc, which means Sony may not secure enough chips for its smartphones to meet its target.

Sony shares were at their lowest since September 1980, said the company citing Nikkei Quick data. — Reuters

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